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The American consumer is souring: What to watch this week
Yahoo Finance • • business
Key Points:
- Upcoming CPI data on October 14 is expected to heavily influence the Federal Reserve's decision on interest rate hikes, with inflation currently taking precedence over labor market indicators in policy considerations.
- Consumer confidence has sharply declined to its lowest level since 2014, driven by concerns over high prices, particularly for goods, services, and energy, despite steady consumer spending and a strong labor market.
- Diesel prices have surged to record highs in the US and Europe due to a slower recovery in refined product exports from the Persian Gulf, prompting G7 countries to announce a coordinated release of 100 million barrels of crude oil and diesel to ease market pressures.
- The economic calendar this week includes key data releases such as the S&P Global US services PMI, ISM services index, ADP employment change, trade balance, and the University of Michigan consumer sentiment report, which will provide further insights into economic trends and inflation expectations.
